California, the largest region producing tomatoes, is facing a surge in tomato prices due to a severe drought that decreased the harvest.
There are concerns that tomato ketchup may not be available for consumption in the future.
California, which accounts for a quarter of the world’s tomato production, is struggling with tomato production due to an unprecedented drought. The record low rainfall in California caused damages, including dried reservoirs and large wildfires. The Metropolitan Water District of Southern California announced, “Precipitation has hit record lows for two consecutive years in 2020 and 2021.”
Lake Oroville, a major reservoir in California, recorded its lowest water level last year. According to a study in 2022, the western United States is experiencing the worst drought in 1200 years, known as the Megadrought.
Mike Montna, president of the California Tomato Growers Association, appealed, “We desperately need rain,” adding, “We have reached a point where our stocks to meet market demand has run out.”
As tomato production faltered, the prices of tomato products have skyrocketed, affecting items like tomato ketchup, salsa sauce, and spaghetti sauce. According to the Bureau of Labor Statistics’ inflation report, the cost of spices, seasonings, and sauces increased by 14.2% as of July 2022 compared to the previous year. Among these, tomato products experienced the most significant price hikes.
The American data analytics company IRI reported that, as of August 10, 2022, the prices of tomato sauce had risen by 17% and tomato ketchup by 23%, compared to the same period the previous year. These increases far exceed the 8.5% rise in the U.S. consumer price index, which was the highest in 43 years. Global inflation has also exacerbated the challenges faced by tomato production.
Montna explained, “The lack of water makes it impossible to grow tomatoes, and the rising costs of agricultural fuel and fertilizer have made tomato cultivation difficult.” The cost of cultivating a one-acre tomato field in Southern California has risen to $4,800, compared to $2,800 twelve years ago. Most of these price increases have occurred over the past two years. Farmers are deeply concerned as forecasts indicate that California’s hot and dry climate will persist.
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